China Reinsurance appoints UBS to look for foreign investor

China Reinsurance (Group) Company (China Re), the country's biggest reinsurer, has hired UBS AG as a financial adviser in a bid to bring in foreign strategic investors before its public listing, market sources reported.

The Chinese company is the dominant player in the nation's reinsurance market after it has completed its restructure into a joint stock company in late October, in which China's Central Huijin Investment Corp holds an 85.5% stake and the Ministry of Finance holds the remaining 15%. Last year, Central Huijin, the subsidiary of the newly established China Investment Corp, injected US$4 billion into the reinsurer.

Industry insiders expected China Re's IPO, which is scheduled to be launched early this year, may raise as much as RMB 20 billion.

China's Re is the largest reinsurer in Asia and the fifth-largest worldwide in terms of net assets. As of Sep. 30, 2007, China Re's assets were valued at RMB 94 billion, with RMB 29 billion premium income during the first three quarters of 2007.